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Note 16 - Segment Reporting
 3 Months Ended
Jan. 31, 2026
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

Note 16. Segment Reporting

 

The Company conducts business through three reportable segments based on geography and the nature of services sold, U.S. Concrete Pumping, U.S. Concrete Waste Management Services and U.K. Operations. Any differences between segment reporting and consolidated results are reflected in Other/Eliminations below or noted as intersegment amounts. All other non-segmented assets primarily include cash and cash equivalents and intercompany eliminations. The accounting policies of the segment reporting are the same as those described in Note 2 of our Annual Report.

 

The Company’s chief operating decision maker ("CODM"), who is the CEO of the Company, makes decisions and evaluates the performance of each segment based on segment adjusted EBITDA. This measure is reviewed in monthly performance reports and is used to assess operating results, compare profitability across segments, and support resource allocation decisions such as budgeting and long-term planning. Results are compared to both budgeted amounts and prior year amounts to provide context and evaluate performance trends. Segment adjusted EBITDA includes direct operating expenses that are attributable to each segment and are regularly reviewed by the CODM. These direct operating expenses include employee cost of operations expenses, repairs and maintenance, fuel, and employee general and administrative ("G&A") expenses. Prior to the fourth quarter of 2025, the CODM evaluated segment performance using segment EBITDA, which included results after allocated corporate expenses, loss on extinguishment of debt, stock-based compensation, other expense (income), net, and other adjustments. Beginning in the fourth quarter of 2025, the CODM transitioned to using segment adjusted EBITDA as the measure of profit and loss. Segment adjusted EBITDA excludes the above allocations and adjustments, consistent with how the CODM now evaluates performance and allocates resources.

 

The following items are excluded from our segment adjusted EBITDA results as they are managed centrally, not regularly provided to our CODM by segment and are not used in evaluating segment performance or resource allocation decisions:

 

 

●

Depreciation and amortization

 

●

Interest expense and amortization of deferred financing costs, net of interest income

 

●

Unallocated corporate expenses – These are central shared costs managed separately and included in "unallocated corporate expenses" in the tables below.

 

●

Loss on debt extinguishment

 

●

Stock-based compensation

 

●

Other expense (income), net

 

●

Other adjustments

 

 

 

The following tables summarize the Company’s segment results, provide a reconciliation of total segment adjusted EBITDA to loss before income taxes and discloses other segmented balances or expenditures for the three months ending January 31, 2026 and 2025:

 

  

Three Months Ended January 31, 2026

 

(in thousands)

 

US Concrete Pumping

  

US Concrete Waste Management Services

  

UK Operations

  

Other / Eliminations

  

Total

 

Segment Revenue: (1)

 $59,941  $18,072  $12,548     $90,561 
                     

Segment expenses:

                    

Segment employee cost of operation expenses (2)(3)

  21,008   3,278   4,140      28,426 

Repairs & maintenance (2)

  5,274   886   885      7,045 

Fuel (2)

  3,091   710   1,064      4,865 

Segment employee G&A expenses (2)(4)

  7,056   2,413   1,490      10,959 

Other segment items (5)

  8,648   2,410   1,894      12,952 

Total segment adjusted EBITDA

 $14,864  $8,375  $3,075     $26,314 
                     

Reconciliation of segment adjusted EBITDA to income before taxes:

                    

Depreciation and amortization (6)

             $12,928 

Interest expense and amortization of deferred financing costs, net of interest income

              8,082 

Unallocated corporate expenses

              8,289 

Stock-based compensation

              618 

Other income, net

              (33)

Other adjustments

              (26)

Loss before income taxes

             $(3,544)
                     

Other segment disclosures:

                    

Total assets (at quarter end)

 $703,497  $202,182  $126,967  $(148,920) $883,726 

Capital expenditures

 $6,355  $1,252  $1,909  $-  $9,516 

 

 

(1)

For the three months ended January 31, 2026, intersegment revenue of $0.1 million is excluded from US Concrete Waste Management Services.

 

(2)

The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

 

(3)

Employee cost of operations expenses include salaries, benefits and bonuses.

 

(4)

Employee G&A expenses include salaries, benefits and bonuses.

 

(5)

Other segment items primarily include expenses that are included in segment adjusted EBITDA but are not individually significant and regularly provided to the CODM, such as insurance, facilities costs, professional fees and subscriptions, and other minor operational costs.

 

(6)

Depreciation expense is regularly provided to the CODM; however, only an immaterial portion of depreciation is directly expensed to the operating segments and included in the information regularly provided to the CODM. The remaining depreciation is excluded from the segment results and allocated along with other overhead costs, as it is not used by the CODM in assessing segment performance or allocating resources.

 

  

Three Months Ended January 31, 2025

 

(in thousands)

 

US Concrete Pumping

  

US Concrete Waste Management Services

  

UK Operations

  

Other / Eliminations

  

Total

 

Segment Revenue: (1)

 $56,914  $16,693  $12,840     $86,447 
                     

Segment expenses:

                    

Segment employee cost of operation expenses (2)(3)

  20,498   3,145   3,899      27,542 

Repairs & maintenance (2)

  4,363   702   899      5,964 

Fuel (2)

  2,959   647   1,184      4,790 

Segment employee G&A expenses (2)(4)

  7,465   2,452   1,392      11,309 

Other segment items (5)

  6,977   2,303   1,819      11,099 

Total segment adjusted EBITDA

 $14,652  $7,444  $3,647     $25,743 
                     

Reconciliation of segment adjusted EBITDA to income before taxes:

                    

Depreciation and amortization (6)

             $13,200 

Interest expense and amortization of deferred financing costs, net of interest income

              5,802 

Unallocated corporate expenses

              8,732 
Loss on debt extinguishment              1,392 

Stock-based compensation

              367 

Other income, net

              (34)

Other adjustments

              (41)

Loss before income taxes

             $(3,675)
                     

Other segment disclosures:

                    

Total assets (at quarter end)

 $741,151  $193,548  $113,544  $(135,358) $912,885 

Capital expenditures

 $2,185  $1,967  $1,678  $11  $5,841 

 

 

(1)

For the three months ended January 31, 2025, intersegment revenue of $0.1 million is excluded from US Concrete Waste Management Services.

 

(2)

The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

 

(3)

Employee cost of operations expenses include salaries, benefits and bonuses.

 

(4)

Employee G&A expenses include salaries, benefits and bonuses.

 

(5)

Other segment items primarily include expenses that are included in segment adjusted EBITDA but are not individually significant and regularly provided to the CODM, such as insurance, facilities costs, professional fees and subscriptions, and other minor operational costs.

 

(6)

Depreciation expense is regularly provided to the CODM; however, only an immaterial portion of depreciation is directly expensed to the operating segments and included in the information regularly provided to the CODM. The remaining depreciation is excluded from the segment results and allocated along with other overhead costs, as it is not used by the CODM in assessing segment performance or allocating resources.